Hong Kong company incorporation
Healy Consultants Group PLC
26 February, 2014
Hong Kong has been ranked as the worlds freest economy and the 2nd best place in the world to start a new business. This has essentially been due to the citys strategic location and the strength of its liberal economic policies.
Hong Kong company registration enjoys a significant number of tax benefits such as:
- 1. You can incorporate a limited company in Hong Kong in one week with a share capital of only US$1.
- 2. Company incorporation in Hong Kong requires only one director and one shareholder. Furthermore, these individuals are not mandated to be residents in the city of Hong Kong.
- 3. A Hong Kong company is legally tax exempt if it does not conduct business within the city of Hong Kong.
- 4. For resident companies, the corporate tax rate is among the lowest in Asia at 16.5%.
- 5. Setting up an offshore Hong Kong company is an excellent way to boost global profits as there are no withholding taxes, sales tax, VAT, import & export taxes and capital gains tax levied on the profits.
- 6. Hong Kong has 34 international double tax treaties that help minimize withholding tax on payments abroad.
Apart from the tax benefits, Hong Kong has one of the best business environments in the world. Incorporating a Hong Kong company is an efficient vehicle which faces minimal corruption, restrictions, and red tape. The city is ranked as the 2nd best place in the world to start a new business for the following reasons:
As Hong Kongs liberal policies attract foreign investors and qualified labour from across Asia, it is deemed as the most business friendly city in Asia. A large number of international trading companies and banks are based here which provide excellent trade finance facilities. Furthermore, the citys shipping and transportation sector attracts the worlds leading freight forwarders, shipping, and insurance companies. This jurisdiction will continue to be one of Asias most favourite destinations for investors all over the world.
- 1. English is the official business language in HK; all formal company documents are written in both English and Mandarin. As a result, a foreign entrepreneur is likely to find working in the city easy;
- 2. Obtaining bank credit is very easy for a Hong Kong business setup. Consequently, the city is ranked 4th best place in the world to obtain credit for business;
- 3. A Hong Kong business setup benefits from the absence of exchange controls to restrict FDIs, currency accounts or repatriation of capital, and earnings;
- 4. It is possible for a resident Hong Kong company formation, regardless of nationality of the owner, to invest in every business sector in the city without any government restriction;
- 5. Along with Singapore, HK is the leading financial centre in Asia. The citys International Financial Centre hosts many global financial firms, insurance companies, banks, and asset management firms;
- 6. HK is entirely a free economic zone in itself; therefore, a resident LLC is a gift for foreign investors who intend to use the city as a regional distribution base or headquarters;
- 7. Being a founding member of the WTO, HK promotes free trade and does not charge tariffs on imports and exports. Furthermore, bureaucratic procedures like licensing and government registration are kept to a minimum;
- 8. HK is ranked as the 14th least corrupt place in the world; this makes it easier for foreign investors to depend on the local laws to protect their assets;
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